In the past few decades, we have lived in an era of rapid economic development, and many people have earned a lot of wealth through various means, but in the last year or two, more and more people have begun to feel that money is becoming more and more difficult to earn. I originally thought that after three years of the epidemic, I could usher in a great economic recovery and revenge consumption. However, the facts of 2023 have taken people by surprise, everyone is afraid to spend, and saving money has become the primary goal of ordinary people now, so much so that we have witnessed revenge deposits. The economy is not growing, supply is falling, unemployment is increasing, and money is becoming more and more difficult to earn. In fact, it's not that the money is not easy to make, but the way of making money has changed.
China's nouveau riche are disappearing, because the logic of making money has been completely subverted, in the past, China's economy has been described as a miracle, from 1978 to 2020 in 42 years, GDP rose 278 times, accounting for 17% of global GDP, the core logic of making money can be summed up in four words in the first half: horse racing.
In the recently popular TV series "Flowers", Mr. Bao learns to do business, not only to see how bold he is, but also whether he is qualified to do this business. In fact, this reflects that in the first half of China's economy, the way to make money was to run around from being a fallen master and building factories in the sea, to borrowing money to buy land and build buildings, and then to engaging in financial leverage, which had more opportunities than other countries. However, the time of such opportunities is short-lived, as the benefits of a bygone era are disappearing.
Urban development is not as rapid as before, and the way real estate plays is also changing, and the original resources have to be revitalized. The demographic structure has also changed, labor costs have risen, and those labor-intensive enterprises have to change their approach. Another point is that the good times for peaceful sharing of resources and technology in the international community are also decreasing. After China's accession to the WTO, although its market share increased, the market share of other countries decreased, so we encountered export problems. The reduction of these benefits means that you will have to put more effort into making money in the future. In the past, the green light has been given to the capital market to solve the problem of production efficiency, not to let capital monopolize it. As a result, China's economy quickly shifted from being given the green light to promoting the orderly development of capital through effective regulation.
The second half of China's economy is known as a period of high-quality development, and it is necessary to drive external circulation through internal circulation. To put it simply, the era of high growth is over, and we need to cause quantitative changes by changing quality. And this is not just a problem for China, almost all developing countries will face a growth adjustment at some point in their development. Some countries such as Germany, Japan, South Korea, and Singapore have experienced moderate growth, around 5%, and then it is difficult to maintain high growth.
In the past, mass production was a way to get rich, but as production efficiency increased and products diversified, people began to focus on new needs and solve the problem of distribution efficiency, such as through the sharing economy and the second-hand economy. In the second half, companies no longer casually set foot in other areas, but focused on their core business, improving technical efficiency and brand value. At the same time, in order to achieve external circulation, it is necessary not only to export products, but also to export brands, and become the formulator of global economic rules. As economic growth slows down, social resources tend to monopolize, and investment opportunities decrease, people should be more cautious and stay away from high-risk investment products.
So times have changed, and making money has become more of a test of wisdom, but every era contains opportunities, because there is also a light in the darkest moments. After 2024, making money is mainly for stability. **The Politburo pointed out that in 2024, on the basis of policies, for the first time, it will put together the pursuit of progress while maintaining stability, promoting stability through progress, and establishing first and then breaking down, and requires strengthening counter-cyclical and cross-cyclical adjustments. And investment insurance is the existence of winning in stability.